The Act permanently changes the Child Tax Credit. This section breaks down the new amount, the strict new eligibility rules, and who benefits most from the changes, effective for the 2025 tax year.
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New Credit Amount
The maximum credit is permanently increased to **$2,200 per child** under age 17, indexed for inflation starting in 2026.
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Stricter SSN Rule
A major change: **Both the parent and the child** must have a valid Social Security Number (SSN) to claim the credit.
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Non-Refundable Increase
The $200 increase is non-refundable. Families need tax liability to get the full benefit. The refundable part remains ~$1,700.
The "Refundability Gap": Who Gets the Full $2,200?
Because the $200 increase is non-refundable, it doesn't benefit families with no federal income tax liability. This chart shows how a middle-income family gets the full credit, while a very low-income family does not see the increase.
